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Low-Carbon Transition

 

Derived from TECO’s B2B2S belief, the final ESG focus emphasizes how TECO, by concentrating on “Electrification, Intelligence, and Green Energy,” drives economic growth, social investment, and talent development, promoting a low-carbon transition across society.

 

 

 

Key Topics
  • Climate action and net-zero implementation
  • Renewable energy utilization
  • Employee training and career development
   

Uncontrollable or Unforeseen Transformation Risks

  • Market acceptance of high-carbon products is decreasing, and initial investment costs for energy-saving measures may cause short-term financial pressure
  • Insufficient talent retention and training resources may hinder organizational low-carbon transformation and increase turnover risk
   
Risk Mitigation
  • Enhance diversified product portfolio to flexibly meet low-carbon market demands across regions
  • Introduce external digital and sustainability expertise to strengthen internal carbon reduction capabilities and low-carbon talent training
   
2024 Achievements

01. Green Products & Energy-Saving Services

  • Increase in green product sales: 73.82% of sales, actively developing green low-carbon products to improve energy efficiency and carbon reduction, promoting market-level low-carbon transition
  • Integrated energy-saving services: "Super ESCO" program combines high-efficiency electromechanical equipment and smart energy management systems, providing one-stop solutions for corporate clients and expanding sustainability impact
  • Deepening energy efficiency technology: Implement high-efficiency motors and renewable energy solutions to continuously improve overall product energy performance and environmental impact

02. Talent Development & Social Inclusion

  • Talent cultivation and external collaboration: leverage external resources and industry-academia partnerships to nurture talents in automation, green energy, and sustainable technologies, strengthening supply chain resilience

 

Committed to creating low-carbon and sustainable growth

 

Starting from 2022, TECO refers to the "EU Taxonomy for Sustainable Activities" to estimate the proportion of sustainable revenue, capital expenditures (CapEx), and operating expenses (OpEx). The classification results for 2024 are shown in the table below:

 

Category Business Scope and Output EU Taxonomy Item Revenue Ratio Capital Ratio (CapEx) Expense Ratio (OpEx)
Taxonomy Eligible Electro-Mechanical Systems & Automation Business Group:
High-efficiency motors and electric vehicles
3.3 Manufacture of low-carbon technologies for transport 37.7% 7.7%  
3.6 Manufacture of other low-carbon technologies
4.1. Electricity generation using solar photovoltaic technology.
8.2 Data-driven solutions for GHG emissions reductions
  HVAC & Smart Living Business Group:
Green home appliances
3.5 Manufacture of energy efficiency equipment for buildings 5.9% 2.6% 15.6%
4.1. Electricity generation using solar photovoltaic technology
  Smart Energy Business Group:
Clean energy projects
4.9 Transmission and distribution of electricity 8.4% 3.2%  
4.10 Storage of electricity
N/A
Not Eligible Other business units   48.0% 86.5% 84.4%

 

・As the industry currently lacks clear standards for determining "Do No Significant Harm" (DNSH), TECO's sustainability classification this year only utilizes the "Taxonomy Eligible" category.

・TECO’s low-carbon products and services refer to the ISO 14020 series standards (Type I, II, and III environmental labels and declarations) as principles for identifying low-carbon products and services based on the environmental characteristics of motors and home appliances.

・Capital expenditures (CapEx) for 2024 are classified as "Sustainable" if allocated for the execution of solar power facilities, new products, new technologies, new processes, safety and environmental equipment, automation, and smart systems investments. General expenditures (maintenance/replacement/factory renovation), capacity expansion, efficiency improvements, quality enhancements, and IT equipment purchases are classified as "Not Sustainable" (Not Eligible).

・Operating expenses (OpEx) for 2024 are classified as "Sustainable" if related to R&D, training, plant environmental expenditures, low-carbon solutions, creative energy storage OpEx, and sponsorships for private sustainable activities.

 

 

TECO GO ECO Low-Carbon Products & Services

To enhance the recognition of TECO’s low-carbon products and services, TECO refers to the ISO 14020 series standards. Based on the principles of Type I, II, and III environmental labels and declarations, motors and home appliances are classified according to their environmental characteristics to determine low-carbon products and services.

In 2024, the proportion of TECO low-carbon product sales reached 73.82%

TECO
GO ECO

TECO GO ECO Logo
  • Type I: Standard motors meeting IE3 efficiency or higher, and home appliances meeting first-level energy efficiency and water-saving standards
  • Type II: Customized motors with efficiency >95% included as initial products under the "TECO GO ECO" low-carbon label
  • Type III: Motors and air-conditioning products certified with carbon footprint

TECO’s low-carbon products and services are classified according to the ISO 14020 series standards and the principles of Type I, II, and III environmental labels, based on the environmental characteristics of motors and home appliances.

 

Electromechanical Systems & Automation Segment: Performance represented by the sales proportion of high-efficiency motors

  • High-efficiency motors revenue proportion: 86.1%

Air Conditioning & Smart Living Segment: Performance represented by the sales proportion of green home appliances

  • Green home appliance revenue proportion: 62.0%

Smart Energy Segment: Performance represented by engineering-related revenue (offshore wind, grid resilience, green building, etc.)

  • Engineering revenue proportion: 52.0%

 

Conduct forward-looking social investment and talent cultivation

TECO Awards

TECO continues to promote industry-academia collaboration and technological innovation. In 2024, the 31st "TECO Awards" Technology category winners facilitated 174 industry-academia cooperation projects totaling NT$500 million, and completed 267 technology transfers amounting to over NT$400 million. These achievements demonstrate efficient connections between research institutions and industry, promoting technological innovation and industrial upgrading, reflecting TECO’s sustainable value in supporting "practical application of research" and R&D.

31st TECO Awards Group Photo

Net-Zero Emission Technology International Competition

The TECO Technology & Education Foundation co-hosted the "2024 Net-Zero Emission Technology International Competition @ Taiwan" with National Taiwan University. The competition attracted 99 international teams and 141 main competition teams from countries including the USA, Denmark, India, Indonesia, Sri Lanka, and Malaysia, with a total of 998 participants. The championship was awarded to Virginia Polytechnic Institute and State University (USA) for the international competition and National Tsing Hua University for the main competition. The foundation actively promotes "talent cultivation" as the source for achieving net-zero emissions by 2050.

Net-Zero Emission Competition

Exclamation Project

TECO and its corporate partners have promoted the "Exclamation" project for over 20 years. The annual "Exclamation Music & Dance" event has become a unique brand blending indigenous songs with symphonic music, attracting over 5,000 spectators. The success of the "Exclamation" project comes from the implementation of "cultural education and transmission," with key success factors being the organization's ability to lead, accompany, and guide indigenous cultural instructors.

Exclamation Project

 


FST Taiwan Student Formula League

TECO actively supports the UN Sustainable Development Goals (SDG 4 Quality Education & SDG 7 Affordable and Clean Energy). It provides students with practical learning platforms, encouraging innovation and teamwork while promoting clean energy through EV initiatives.

FST Taiwan Student Formula

Rural STEM Science & Creativity Program

Since 2009, the TECO Technology & Education Foundation has implemented the "Rural STEM Science & Creativity Program," now in its 17th year, serving 230 rural schools and 135,266 students. The program promotes educational equity through themed STEM courses, self-made teaching aids, and hands-on teaching in remote areas, helping reduce urban-rural learning gaps and cultivating sustainable talent.

Rural STEM Program

Green Brain Creativity Competition

The Green Brain Creativity Competition is an annual event hosted by TECO Electric. The 3rd edition attracted enthusiastic participation from elementary and middle school students across Taiwan. Students demonstrated sustainable thinking, supported by teachers and schools. This competition aims to instill energy-saving concepts and inspire creativity and experimental thinking in Taiwan’s next generation, embedding sustainability DNA from an early age.

Green Brain Creativity Competition

 

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ESG office

  • ESG@teco.com.tw
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